For each of these situations, determine the savings amount. Use the time value of money...
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Accounting
For each of these situations, determine the savings amount. Use the time value of money tables in
Chapter 1 (Exhibit 13) or in the Chapter 1 appendix. (LO 4.3)
a. What would be the value of a savings account started with $700, earning 4 percent (compounded annually) after 10 years?
b. Brenda Young desires to have $15,000 eight years from now for her daughters college fund. If she will earn 6 percent (compounded annually) on her money, what
amount should she deposit now? Use the present value of a single amount calculation.
c. What amount would you have if you deposited $1,800 a year for 30 years at 8 percent (compounded
annually)?
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